DFCC Bank supports Watawala Tea Ceylon’s leveraged acquisition financing of Daintee

Wednesday, 23 September 2020 00:54 - - {{hitsCtrl.values.hits}}

From left to right: Sunshine Holdings Group CFO Aruna Deepthikumara, Watawala Tea Ceylon Managing Director Shyam Sathasivam, DFCC Bank Senior Vice President Corporate Banking Shamindra Marcelline, DFCC Bank Vice President Corporate Banking Palan Rajanathan, DFCC Bank Relationship Manager Corporate Banking Vindula Dharmasena, and DFCC Bank Assistant Vice President Corporate Banking Sumudu Abeygunasekara

DFCC Bank PLC completed the acquisition financing for Watawala Tea Ceylon Ltd., a 100% owned subsidiary of Sunshine Holdings, one of the most established corporate entities in Sri Lanka. Watawala Tea Ceylon acquired a leading Sri Lankan confectionery company Daintee Ltd., adding several brands to its portfolio including Daintee, Milady and Bensons. The transaction was valued at Rs. 1.7 billion. The term loan of Rs. 1.6 billion was structured by DFCC Bank to finance the acquisition. DFCC has been involved in large scale transactions with both the private and public sector during the last 12 months and is a preferred bank for long-term financing for corporates.

The acquisition of Daintee comes at a time where Sunshine as a Group looks to selectively expand its presence in Sri Lanka’s fast-growing FMCG segment, by extending its portfolio beyond tea. Daintee joins Sunshine Consumer’s growing portfolio of businesses that markets and distributes some of the country’s most-loved tea brands. The acquisition is in line with the Group’s strategy to nurture and build local brands.

DFCC Bank Director and CEO Lakshman Silva commented: “DFCC Bank is delighted to support and partner Watawala Tea Ceylon in structuring and arranging this unique two tiered facility which comprises of guarantee and term loan facilities. This transaction stands as a further testament to our ability in closing large transactions, and our strong and continued commitment to our stakeholders.

DFCC Bank Senior Vice President and Head of Corporate Banking Shamindra Marcelline stated: “This is a landmark transaction by the bank for an important corporate banking client. The transaction marks another significant achievement - especially given prevailing market conditions - which is conducive for strategic mergers and acquisitions. Congratulations to Watawala for leading the way. This transaction also highlights our capabilities in acquisition financing, which is a key corporate banking initiative.